The National Council of Textile Organizations (NCTO) has expressed cautious optimism over the White House's recent announcement of executive actions designed to curb de minimis shipments. While acknowledging these actions as a "step forward", NCTO President and CEO Kim Glas emphasized the urgent need for a more comprehensive solution to address the abuse of the de minimis provision.
The White House's announcement included rulemaking to limit de minimis treatment for imported products subject to U.S. trade remedies and penalties, and a requirement for additional information on de minimis shipments. These measures aim to mitigate the impact of de minimis, a trade provision that allows low-value shipments to enter the U.S. without paying duties or taxes.
However, Glas stressed that the de minimis loophole has caused "severe demand destruction" in the U.S. textile industry, facilitating the influx of cheap, often illegal imports that undercut American jobs and manufacturing. She called on Congress and the administration to work together to "immediately close this disastrous loophole once and for all."
The NCTO also supports the administration's call for the global exclusion of trade-sensitive items, including textiles and apparel, from de minimis treatment. This would help reduce the volume of de minimis goods, making it easier to detect illicit products like fentanyl. Additionally, the NCTO applauded the administration's directive on developing a plan for immediate textile and apparel procurement, which is seen as critical to the industry's survival.